Settle credit card debt » Debt Settlement

Debt Relief And Single Mothers

admin — Fri, 24 Dec 2010 05:55:10 +0000

Single moms often find themselves with a considerable amount of debt. In many cases, they must start from scratch after a divorce. The debt quickly adds up, as they begin a new chapter in their life. However, there are options for debt relief for single moms.

If you are a single mom drowning in debt, it is important that you have a full understanding of how much debt you exactly have. In order to find relief from debt, be sure that you sit down and make a compiled list of all of your current debt. Once you have an accurate list, then you can more effectively work to eliminate it.

Many single moms do not have equity in a home. However, if you do, then you may want to consider a home equity loan that can be used for debt consolidation. With consolidation, you compile all of your debt into one larger debt. Although you are compiling the debt into a larger debt, over time you will save a considerable amount of money. Since you will only be paying one single interest rate, you will be able to save the amount of money you are paying towards interest.

If you do not currently have a home or do not have equity in your current home, you can look at obtaining a personal loan. With a personal loan, you can pay off your other debt, just like with a home equity loan. Debt settlement is one of the quickest and easiest ways to get out of debt, without filing for bankruptcy.

A debt settlement company will help to negotiate and lower your overall debt with your creditors. Your creditor will agree to accept a single payment to pay off your debt. Once the creditor accepts the single payment, they will then report to the credit bureaus that you have fulfilled your debt obligation. They will report to the bureau that you have either “paid” off your debt, “settled” or “settled for less than full amount”. When in financial hardships, creditors are generally willing to accept a lower amount than you actually owe. They do this because they realize if you file bankruptcy, they may receive nothing.

Credit counseling can also help with debt relief. Credit counselors can work with you to reduce your monthly payments and/or create a debt repayment plan. Though it may take longer to pay off your overall debt, you will be left with more money each month to pay other bills. Make sure that you choose a reputable counseling service. You can ask family and friends for recommendations or check with the Better Business Bureau.

In some instances, it may be necessary to file bankruptcy. By doing so, you can begin with a fresh start. There are two basic types of bankruptcy, Chapter 7 and Chapter 13. With Chapter 7, you will need to sell off your non-exempt assets in order to make an attempt to repay your creditors. However, with Chapter 13, you will make a repayment plan through the bankruptcy courts.

Debt relief for single moms may be easier than you once thought. There are a variety of steps that you can take in order to bring you one step closer to financial freedom. Most importantly, once you have reached a point that you are free from debt, that you stay at that point.

By: Lee Beattie

Signs That You Need Professional Credit Card Debt Help

admin — Wed, 27 Oct 2010 10:39:45 +0000

If you are one of those people who are having problems with finally settling, or at the very least, reducing credit card debt, then you have probably heard of these terms: debt settlement, debt negotiation, and debt relief. Having a huge debt in your name is not a matter to be laughed at. Creditors and their agents relentlessly pounding your door and calling you late at night are just some of things you have to embrace if you won’t settle your debt.

As much as possible, you will want to settle your debt on your own as hiring a debt assistance company will cost you a good deal of money. But at some point, investing in a company that offers debt help services may prove to be a good move, especially if you are really overwhelmed with the situation and cannot think straight. But how do you tell that you are over the hill and require professional help? Here are some tell tale signs.

If you are paying off your credit card debt with another credit card, then there is something wrong with your finances. You are merely compounding your debt and not actually paying anything off. You certainly need to consult with a debt settlement expert before you start paying your debts with advance cash pay loans.

Another sign that your finances are in shambles is when you can no longer keep track of your bills. If you are late with one or two basic utility bills, such as gas and rent, and you have other bills to take care of, then you certainly need some professional assistance to diffuse the situation. You will need a debt help expert to manage your bills and look for options that you can use to settle your debts.

If you are considering declaring bankruptcy, then you better seek expert advice. Many professionals, even experienced credit card debt assistance specialists, will tell you that bankruptcy should be your last option since the effects on your credit points and standing are pretty much long-term.

By: Jiles Masson

Tips for Writing a Professional Debt Negotiation Letter

admin — Tue, 05 Oct 2010 10:41:28 +0000

When it comes to the task of debt negotiation and settlement, you are faced with two options, both of which will require you to do some work. Some people choose to take care of business themselves and negotiate with their creditors one on one. Others take the easier route, which is to hire a debt negotiation service to help you straighten everything out and settle.

If you’re one of those brave souls choosing to negotiate your debt on your own, the first task you’ll need is to learn how to write a debt negotiation letter. Convincing creditors to settle at a lower amount of debt than you owe is quite the challenge, however done the right way, it can be done.

Before you start writing and sending out letters, carefully go over all of the pros and cons of self debt negotiation. If any of it seems like it may be a little too much for you, don’t hesitate to contact a lawyer of a debt settlement company. They will be more than happy to help you with any questions you have. Here are a few pieces of advice on how to write a legally binding debt negotiation letter:
Get to know the terms and conditions of your debt. This includes all of the fees, surcharges, taxes, and interest rates that apply. Put together some numbers of the total amount you owe, including all fees and taxes. Knowing what you owe and how much you have helps you have a better understanding of what you can ask for with your creditors. They will be asking for about three quarters of the balance, not the full amount so be sure to have at least that much. If you offer to pay too little or pay in low increments, most creditors will not take your letter as serious as you like. You want your settlement request in writing. Make your settlement request in writing. If there is any way you can, hire a lawyer or debt negotiation counselor to check over your letter for any inconsistencies or unnecessary items. The first one you write needs to be relatively low but also reasonable. If the creditor denies this first request, you can always raise your settlement request up enough without putting yourself in further financial duress. As you are writing out your letter, don’t threaten anyone in it or suggest that you are going to simply file bankruptcy if they don’t work with you. These tactics will only make things more difficult for you and less likely any creditor will work with you. Ok, the creditor has approved your request, now you need to show them that you are acting on good faith. Make all of your payments in full and on time. Be sure to get a written confirmation of the receipt of payment. Talk to a debt counselor to see what your other options are if the creditor denied your request or will only meet you halfway. Keep a record of all the correspondence you have with your creditors. Promises and agreements made over the phone are difficult to verify if something falls through the cracks. A paper trail, in this case, is good thing since it provides documentation of all your work. It also helps you to find important information more quickly if a question or problem arises. Any agreements which were made should be followed up on to ensure they all have been completed. An example of this would be if one of your creditors agrees to clear or partially clear your debt, check that the clearance appears on your credit report within the following few months.

By: TL Kleban

How Can I Settle Credit Card Debts Myself?

admin — Thu, 02 Sep 2010 05:11:58 +0000

The average American family these days owes at least $10,000 of credit card debt, plus a mortgage and at least one car payment. Many consumers have fallen into the trap of only being able to make the minimum monthly payment or worse make the payments on an irregular basis. Does this sound like you? Have you wondered “How I can settle credit card debts myself?

The answer to that question is through debt settlement, convincing your creditors to take less than the full amount owed. Like the pharmaceutical advertisements on TV, debt settlement isn’t for everyone.

Your accounts must be at least 6 months over due. In other words no payments have been made for 180 days. At that point the bank or credit card company will have written off the balance of the card. It is still a valid account but its worth to the bank is close to nothing. If you make a payment on the account its value increases and the creditor won’t negotiate.

You must have some funds available to pay at least 50% of what you owe. Most creditors won’t agree to anything much lower when negotiating with an individual creditor. Of course start the discussions with an amount that is 35% to 40% of what you owe so you have some wiggle room.

It’s fine to start the debt settlement procedure with a phone call but it’s best to get everything in writing. Your job is to convince the creditor that there is no way that you can possible pay more than what you’re offering to settle for. It may not be pleasant but if you’ve lost your job, gone through a divorce or have major medical bills to pay, the creditor needs to know that.

The creditor may insist that you make a payment, even just a small payment immediately, to show your good faith. But remember, if you do that you bring the account to day 1. Accounts must have had no payments for 180 days to be eligible for settlement.

Until the creditor has agreed, in writing, and you’ve made the settlement payment, the creditor can pursue legal action. As soon as you receive an debt settlement agreement, send in a check for the amount with a copy of the agreement by registered mail or overnight delivery. Some advisers say it’s best to put on the back of the check where it would normally be endorsed a statement that says For payment in full of account (and then your account number.

Debt settlement is one answer to the question: How Can I Settle Credit Card Debts Myself?

By: Dee Power

Consumer Credit Card Debt Relief Scams! Are They Real?

admin — Tue, 31 Aug 2010 16:13:58 +0000

I have been in the credit card debt relief industry for just about 10 years now and have been in the financial industry for over 20 years. The point of this article is to give people a heads up on debt relief companies also known as debt settlement or debt negotiation companies. I will give you the pro’s and con’s of this process and what to watch out for when interviewing a company to help you get out of debt. Before I go on I want to let you know that this will be a rather long article and by the end of it my goal is to have you understand how the debt negotiation/settlement process works in case you don’t already know and I would like you to understand the tactics of companies out there that do not truly have your best interest at heart.

First I would like to state that the process of debt negotiation as your means of consumer debt relief is not for everyone, some people are better suited for bankruptcy and others do not have the correct mindset to go through this process.

I would like you to first understand what debt negotiation is and how it works. The goal of a debt negotiator is to obtain a debt settlement for you on the current debt amount you owe your creditor. So for example you may owe one particular creditor $10,000 so the goal of the negotiator would be to have you end up paying back say $6,000. The two main benefits of going through this process are to save money on what you currently owe your creditors and to save time. By just paying the minimum payment with even a modest interest rate you will be looking at 30 or more years to become debt free, with a sound debt negotiation program you will be out of debt within 2-3 years or sooner depending on your current financial situation.

Now you must understand these are great benefits but as with anything in life there are drawbacks, nothing is perfect and this consumer debt relief procedure is no different. For starters your creditors will not be willing to negotiate a debt settlement at all if you are current with your monthly minimum payments. They would prefer you to stay on their credit treadmill for the next thirty years and pay them back over four times the balance in interest alone. So you must fall behind on your payments to put the creditors into a position where they will be willing to settle. Once you stop paying them the ball game changes completely and they will then be willing to talk in terms of negotiating a settlement.

So obviously for some people the beginning of this process will have a negative effect on their credit score. For those who are already falling behind then the negative effect will be no different than it already is. Unfortunately for some people this will be the deterring factor that keeps them from going into debt settlement making them a slave to their creditors for the next thirty years. The good news is that this negative effect does not last forever, in fact once the settlements start coming through your credit score will begin to rebound and go back up. The reason being over 30% of your credit score according to MyFICO is based on how much debt you owe. But if you are stuck in a bad debt situation even if you are current with your payments your score is probably not all that good in the first place, and besides when stuck deep in debt your focus should be on how to get out of debt as quickly as possible, not on your ability to accrue future debt.

Now by falling behind on your debts you must understand that these creditors are just not going to roll over and play dead, they will be calling to try and collect the debt. For some this is not a problem at all, for others it is, that is why I stated above this process is not for everyone and the consumer must be in the correct mind set. From my years of helping people there is no rhyme or reason to how many calls you will receive some clients of mine barely get calls while others get them almost everyday. Something to keep in mind too is that no company has the power to legally stop the calls, so any company that tells you they can is flat out lying.

As you can see like I said earlier there are pro’s and con’s, but if you can accept the con’s you will be quickly on the road to financial freedom and will save a lot of money in the process. Now to get to the meat of the matter and why I named this article “consumer credit card debt relief scams”.

We here in America over the past couple of years have been experiencing a very negative downturn in our economy. Thus putting many consumers in a compromising position financially, leaving boat loads of people stuck in credit card debt. So naturally this opened up a much larger market for debt negotiation. Many fly by night companies have been popping up all over the country, many of which are ex mortgage brokers who sold people bad loans and helped them get into this sticky position in the first place. Now I use the word scam which can take on a few meanings, while yes there are some companies out there that are flat out scams and have no intent on doing any work for you at all, most of the times that is not the case. Instead many companies simply do not give people all the facts on how debt negotiation works nor do they truly put them on a plan for success, which I will explain in a minute.

One common issue that most consumers have with debt settlement companies is they do not fully tell them about how the process works, instead they sugar coat things and just preach about the great benefits. I have spoken to countless amounts of people who have signed up with companies and were under the impression that they were going to stay current with their creditors and will never receive any calls. So needless to say this became a huge problem once they began.

Another major problem a lot of these companies have is deceiving people into the kind of savings they will be getting on their debts. Some companies will say they will save you 70% of what you owe. Now while they may get settlements that low what their opting not to tell you is how much you will be saving after you have A) paid them their fees, and B) paid back the creditors. Honest companies will tell you what your true savings will be. If you will save somewhere between 40-50% of what you owe including their fees and paying the creditors than that is pretty darn good. Plus many of these companies will try and guarantee a certain amount of savings, if you hear this run for the hills. NO one in this industry can guarantee a certain amount that is why it is called DEBT NEGOTIATION! They are negotiating to get a settlement for as low as they can get.

Then there are the companies who will let you pay whatever you can to get on their program. These are the worst because they do not truly have your interest at heart and know they are setting you up to fail and not succeed. You must understand to achieve the type of savings I stated above this process should take no more than three years, preferably two or less. And the bottom line is some people simply cannot get it done in that time frame and should realistically be looking into bankruptcy. What these unscrupulous consumer debt relief companies will do is put you on a program for 4 or more years and basically accepts whatever payment you can afford. Knowing full well you are not going to be saving much of anything and will more than likely fail off the program, all they care about is getting the fees and that is it. An honest company will diligently review your budget with you and make sure this is something that you can manage, as well as fully explain to you both the benefits and drawbacks of doing this. And let you make the conscience decision as to whether this is the best consumer debt relief method for your situation.

Another very good way to evaluate a company is to make sure they are registered with the BBB (Better Business Bureau) and that they are in good standings with very few complaints. And if there are complaints make sure they were resolved to the clients liking.

By: Stephen Bis

Settle Your Own Debt ‘Only If’

admin — Fri, 23 Jul 2010 20:44:19 +0000

Time is valuable. Most people can not afford to lose time from work to negotiate settlements on their debt. Phone calls, and correspondence must to be answered. Complete contact must be kept with creditors and collection agencies, every detail of the debt being negotiated on must be known. Can everyone afford to do this, YES, if they are home unemployed! Arrangements sometimes may take up anywhere from one day to six months , this is why I say negotiating debt is time consuming.

Collectors will test your patience. The phone calls become unbearable, one call after
another, collection agencies do not give up. These calls come at all times of the day, and they are computer generated, knowing the stress you are going through just being in debt are you willing to add extra stress because you think you might know what you are doing? This is where many people quit their own efforts and contact debt relief agencies. Trust me I have the gray hair to prove it, collection calls are not easy to deal with.

If you are a car mechanic chances are I will trust you with the brakes on my car. I do not think I will go to my local garage to learn how to become debt free. The know how is not only how to speak, most of us know how to negotiate, it is not complicated. Working on oyur own debt is knowing when to say certain things and when not to. negotiating is like a boxing match, one must know when to take a punch and when to hit back. This is called experience, just like that car mechanic who knows when to change those brakes, debt negotiators know when to go in for the kill. Unless you are extremely good at knowing when to punch and when not to, debt settlement is not the business for you.

The contacts. Most people laugh when I mention this, the fact is this business is repetitive. What to say, what to do and whom to work with. Believe it or not, there are nice people collecting debt. It takes time, patience and the know how to find these people. Once you find them, you never let them go. You make your enemy your ally, in this case debt negotiators learn to work with debt collectors. They work up a rapport, they sometimes become friends, that is why it is so important to seek the proper help.

If you think you have what it takes to negotiate on your behalf, by all means go ahead. Keep in mind the road is not going to be easy but not impossible. It is highly rewarding to know you can make a difference in peoples lives, as a debt negotiator I take great pride in helping those in real need of debt relief, people with a real hardship. I wish you great success in your efforts.

By: Dan Delgado

Debt Settlement In Florida

admin — Sun, 20 Jun 2010 11:57:57 +0000

Thousands of people across the country are faced with overwhelming debts on a daily basis. Many of these people feel that filing for bankruptcy is the only viable option to remove themselves from debt. Fortunately, debt settlement, which is also known as debt reduction or debt negotiation, exists. It is a way of reducing debts that does not involve completely destroying a credit score.

Debt settlement is a new way of dealing with debt and credit problems. It involves negotiating a debt settlement problem with a creditor. Typically, a debt counselor will help in the negotiation of the plan to remove debts. This whole concept is a legitimate solution for consumers whose credit card debt is overwhelming. The concept is equally useful for people who have fallen behind on payments as it is for people who are barely able to afford the minimum payment.

Unfortunately, no solution to debt is completely free from potential downsides. Debt settlement, like other options, will have a negative effect on a person’s credit rating. Fortunately, this will be less drastic than if an individual files for bankruptcy. There is also the possibility that the creditor will take legal action to collect the full amount owed to them. The final potential downside is that creditors will continue to call until the debt is settled.

The potential for negative consequences is diminished in Florida due to the state’s favorable debtor laws. Florida provides its citizens with numerous rights and protections concerning past due amounts on unsecured accounts such as medical bills, credit cards, repossessions, and personal loans.

All states have laws that require collection agencies to stop contacting a consumer if the consumer sends a Cease and Desist letter or a Power of Attorney letter which tells the collection agency that a third party is responsible for handling all communications with the creditor. Florida protects its citizens more by limiting the harassment from collection agencies as well as the original creditor (this is the bank or credit card company). The same laws which regulate and restrict what a collection agency can do also restrict the harassment abilities of original creditors.

In addition, Florida has set up laws that frequently completely protect a debtor’s wages and homes. Wages are protected by the state’s wage garnishment laws. This legal structure gives a creditor more of an incentive to settle.

Many cases, despite all of these protections, do end up in court. This is because creditors always have the right to sue a debtor as a means of collecting a past due amount. This is true regardless of whether the consumer has taken any action to resolve outstanding debt.

By: Joseph Devine

Simple Ways to Reduce Credit Card Debt

admin — Sat, 19 Jun 2010 21:27:46 +0000

We are living in a society that values credit cards highly and dreads credit card debts with gusto. But one thing is for sure, you will incur debt if you use a card. What people actually loathe is the huge debts that accumulate once the bill comes in. If you have already amassed huge debts in your name, the best thing you can do is explore debt settlement options that are immediately available to you.

You can start by ranking your cards (if you own multiple accounts) from the lowest to highest in terms of amount owed. This will help you evaluate how much you actually owe in total and which account would be easy to pay off first. You can simply begin your payment schedule with the card with the least amount and the least interest rate. This step will eventually help you settle or reduce your overall debt.

Perhaps one of the easiest ways to reduce credit card debt is by paying off the current minimum payment on your account, or more, every month. If you are able to reduce your balance but retain your minimum payment throughout, you will clear your debt in no time.

Probably the most effective ways to stop the debt from piling up is to stop any more purchases using your card. It is self-explanatory and quite necessary if the debt is really huge that you are going to need the services of a debt assistance expert.

When it comes to preventing credit card debt, it all boils down to self control and common sense. You do not need a financial guru to tell you what you already know, you just need to exercise the will to control your spending habit or else you will be looking for debt settlement choices that would put a huge mark on your credit standing.

By: Jiles Masson

How Can Payday Loans Help You With Your Credit Card Debt Problems?

admin — Thu, 29 Apr 2010 11:31:50 +0000

When you are juggling monthly bills and your income is meager, then you have a huge dilemma on your hands. If you are using a credit card, then probably one of your main concerns is how to settle your credit card debt. But how can you pay off all your debt if you generate barely enough income?

If you want to settle your debt, then it is best that you seek expert advice from a debt settlement company. However, if you need some quick cash to cover some unexpected expense, you are running low on the groceries or a sudden medical matter has come up, then perhaps you can afford to take out a quick payday loan.

A company that provides payday loans can provide you with a quick cash, as much as $1500 in less than an hour from the time you submitted your application. Some companies do not even check your credit standing as long as you show them that you are able to pay. With that being said, a payday loan is perhaps one of your best options when it comes to making quick cash, which you can use to settle or reduce small debt.

However, you need to be careful when opting for a payday loan to get some quick cash. After all, it is a loan, which adds up to your total debt and will definitely sink your finances if left unchecked and unsettled as soon as possible. Remember that a payday loan is not enough to clear your debts. You must explore your debt settlement options with a credit card debt assistance expert before you make a move that you might regret.

By: Jiles Masson

How to Settle Debt – Advice on Debt Settlement Negotiations

admin — Sat, 24 Apr 2010 17:25:50 +0000

Understanding how to settle debt is the first step to dealing with a serious financial situation. It is worth being clear about the terms we are using here, because debt settlement is a very specific thing, which is quite different to debt consolidation or debt management. This article is about how to settle debt when you are really struggling financially and cannot afford to keep up with the repayments on your debts. This is the situation that debt settlement is designed to address and is the only situation where it is likely to work.

If you are in debt but can afford to keep up with repayments and could in fact repay the debts eventually, you will not be able to settle your debts for less than the full amount. Debt settlement is about persuading creditors to accept far less than the full amount owed, and they are not going to do this if they can see that you could afford to pay them back in full. In this situation, you are more likely to be suited to a debt management plan.

If you think your circumstances are appropriate for debt settlement to work, the main options you have are whether to use a professional company to work on your behalf, or learn how to settle your debt for yourself. Either way is a perfectly valid option and it simply depends on how you feel about it. The clear advantage of using a professional negotiator is that they do this every day and are very good at it. In addition to this, the bigger companies will have established relationships already with most of your creditors. The fact that they are negotiating for many other people too will give them substantial leverage with the creditors, which normally means more of the debts are written off.

On the other hand, if you understand how to settle debt yourself, you save on having to pay anything to a debt settlement company. The only downside is that there is no way you are going to be able to achieve the same results as the professionals unless you get the right help and advice. Negotiating to settle debt is not just about playing hardball. That is almost irrelevant compared to knowing how your creditors deal with bad debts and at what point in their processes they are most likely to agree to settle.

To be effective in your negotiations you need very specific advice on what to say and when to say it. There are many different publications and systems available offering to help you learn how to settle debt, but many of them are not worth having. There are, however, a few really good ones, ranging from written guides containing template letters and phone scripts, through to full interactive courses with personal help and support.

If you prefer to leave it to the professionals, you will need to pay them for their trouble. The good companies are likely to just take a proportion of what they manage to save you, but if you do not choose your company well, you could end up paying lots of money up front, and still end up with nothing being written off.

Not all debt settlement companies will deliver what they promise, but there are still enough well established organisations that are trustworthy and honest, with a good record of successfully helping many people. You should always apply to a few different companies anyway, so that any proposal you get can be measured against others. To be sure of using only the best companies, it is advisable to begin with a list of recommendations for well known companies, rather than just searching individual company websites.

By: K D Garrow